Trading update

Inion Oy
Trading update

Tampere, Finland and Takeley, UK 10 January 2007…Inion Oy (LSE: IIN.L) (“Inion”), a company focused on the development of novel biodegradable medical implants, today provides an update on trading ahead of its preliminary results announcement in March 2007.

Based on the un-audited sales figures for the year to 31 December 2006, Inion’s Directors anticipate that revenues for 2006 will be around €5.7 million, in line with current market expectations.

The net loss for the year will be higher than expected as the Company has decided to make a number of one-time write-offs. The value of these items is expected to be around €7.0 million. This includes a deferred tax asset of €4.1 million.

For further information, please contact:

Inion Oy      
Dr Auvo Kaikkonen, Chief Executive Officer
Julien Cotta, Chief Financial Officer
Tel: +44 (0)1279 874 222

Citigate Dewe Rogerson
Mark Swallow / David Dible / Helena Galilee
Tel: +44 (0)207 638 9571
Mobile +44 (0)7903 737703

About Inion (www.inion.com)

Inion Oy is a Finnish company that specialises in the development of biodegradable medical implants.

The Inion core expertise and technology lies in the design and manufacture of innovative biodegradable plates, screws, pins and membranes that are used to enhance the healing of skeletal injuries (bone and soft tissue), such as those caused by trauma or by reconstructive surgery. Inion implants are made from its proprietary Inion Optima™ family of biomaterials, with properties tailored for specific surgical applications, in terms of strength, flexibility and rate of degradation.

Inion has developed and launched products in five strategic business areas – cranio-maxillofacial surgery, orthopaedic trauma, sports medicine, dental surgery and most recently in the spinal implant area – in nearly 50 countries worldwide.

Inion was incorporated in early 2000 by an international team of experts in biodegradable materials and their clinical applications, and listed on the Official List of the UK Listing Authority in December 2004. The Company has operations in the UK, R&D and production facilities in Tampere, Finland, and a US office in Oklahoma City, OK.

This announcement includes "forward-looking statements" which include all statements other than statements of historical facts, including, without limitation, those regarding the Group's financial position, business strategy, plans and objectives of management for future operations (including development plans and objectives relating to the Group's products), and any statements preceded by, followed by or that include forward-looking terminology such as the words "targets", "believes", "estimates", "expects", "aims", "intends", "will", "can", "may", "anticipates", "would", "should", "could" or similar expressions or the negative thereof. Such forward-looking statements involve known and unknown risks, uncertainties and other important factors beyond the Group's control that could cause the actual results, performance or achievements of the Group to be materially different from future results, performance or achievements expressed or implied by such forward-looking statements. Such forward-looking statements are based on numerous assumptions regarding the Group's present and future business strategies and the environment in which the Group will operate in the future. Among the important factors that could cause the Group's actual results, performance or achievements to differ materially from those in forward-looking statements include those relating to Inion’s funding requirements, regulatory approvals, reliance on third parties, intellectual property, key personnel and other factors. These forward-looking statements speak only as at the date of this announcement. The Group expressly disclaims any obligation or undertaking to disseminate any updates or revisions to any forward-looking statements contained in this announcement to reflect any change in the Group's expectations with regard thereto or any change in events, conditions or circumstances on which any such statements are based. As a result of these factors, prospective investors are cautioned not to rely on any forward-looking statement.